Real Estate Economic Forecast 2023: More Developments

Real estate money is flowing into central Massachusetts. Throughout 2022, investment firms large and small have been adding to their real estate portfolios in the region. With many proposed developments starting in 2023, construction firms should see significant work. The office market in 2023 will be interesting as companies develop strategies for where their employees are located.

Urban area steadily improving

In the second half of 2022, many businesses will move into downtown Worcester. While well-known old establishments like the Owl Shop have left, new restaurants like La Central Bakery and Cafe and Ziggy Bombs have moved into downtown. The former Elwood Adams Hardware storefront opened a new art space, and the Worcester Regional Food Hub opened a space in the Glass Tower at 446 Main.

The upcoming year will see more vacant retail and restaurant space along Main Street for tenants and businesses to move into available office space as companies formulate strategies for moving back into the office.

blockbuster investment property

Throughout 2022, central Massachusetts sees a steady stream of national real estate investment companies paying top dollar for large rental communities and industrial properties throughout MetroWest and Worcester counties. There is no sign that this trend will abate in 2023. Developers are still looking for cash for new projects, and companies will continue to do sale-and-leaseback transactions to boost liquidity. Investment firms will be happy to spend their money on reliable rental properties to expand their portfolios.

shuffling industry

There are millions of square feet of modern industrial space being built, much of it on speculation. If the properties come online, some will be occupied by companies moving into the area, but local companies may seek to update their facilities. The next year is likely to see a lot of movement between these new properties and old warehouse space.

Photo | Matt Wright

Polar Park first opened for baseball games in May 2021, with construction of the stadium fully completed later that year.

Suburban Multifamily Rental Properties

It seems like every few weeks a new blockbuster multifamily development is planned in Worcester, as developers seek to meet growing apartment demand and the city seeks to address the housing crisis. Surrounding communities such as Marlborough, Clinton and Shrewsbury are seeking and receiving proposals for multi-family developments. By 2023, as long as residents concerned about school traffic and congestion don’t hold back the projects, more of these projects will move forward in towns around Greater Worcester.

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